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SNP GOES £800,000 INTO THE RED AS MEMBERSHIP SLUMPS
Updated
SNP GOES £800,000 INTO THE RED AS MEMBERSHIP SLUMPS
24th August 2023
Humza Yousaf
SNP
Politics
Scotland
By Tom Gordon @htscotpol Political Editor
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119 Comments
Humza Yousaf (Image: PA)
The SNP plunged more than £800,000 into the red last year as its donation and
membership income slumped, its latest accounts have revealed.
It was the largest deficit the party has ever recorded in a year without the
expense of a parliamentary election to fight, and its second biggest deficit
ever.
The official accounts, published this morning by the Electoral Commission, also
show the SNP ended 2022 with negative reserves of almost £220,000.
The party’s membership has fallen almost 30% in 18 months to around 74,000 in
June.
National treasurer Stuart McDonald said the cost of living was behind cancelled
memberships and admitted the party was facing “challenges and uncertainty”.
He said returning to a financial surplus in 2023 was a priority.
The Scottish Tories said the accounts, which cover the last full year in which
Nicola Sturgeon was SNP leader and her husband Peter Murrell was SNP chief
executive, raised "serious questions for the party".
The Tories, who do not publish their own Scottish accounts, also demanded new
chief executive Murray Foote should provide "full transparency as a matter of
urgency".
Scottish Labour said the governing party was in "utter disarray".
As the SNP disclosed in June, the accounts to the end of December 2022 include a
qualification or health warning for the first time.
Auditors AMS reported: “During the course of our audit, we identified that
original documentation in respect to some items of cash and cheques received for
the current and prior year, relating to membership, donations and raffle income
were not kept by the Party.
“We have been unable to satisfy ourselves by alternative means regarding the
completeness of income in respect of the above limitation in scope. Consequently
we are unable to determine whether any adjustment to income is necessary in the
current or prior year and the potential impact on opening reserves accordingly.”
The accounts show the SNP recorded back-to-back deficits for the first time
since the independence referendum, ending £732,072 in the red in 2021 and
£804,278 in 2022.
Membership income fell from £2,516,854 in 2021 to £2,286,944 in 2022, while
reportable donations fell from £695,351 to £368,538.
The SNP’s accumulated reserves fell from £584,649 to minus £219,629.
Cash at the bank and in hand fell from £144,975 to £46,039.
Staff costs rose from £1,282,780 to £1,349,503.
The accounts also show that Peter Murrell, the party’s former chief executive,
who is married to Nicola Sturgeon, continues to be owed £60,000 by the SNP.
He loaned the party £107,620 in July 2021, ostensibly to help it with cash flow.
He resigned in March after the party misled the media about its falling
membership.
Although the SNP, like other parties, has recorded large deficits in the past,
these have tended to coincide with years in which Holyrood or Westminster
elections rack up campaign costs.
READ MORE: New SNP accounts omit Indyref2 appeal under police investigation
The only time the party ended the year with a bigger deficit was in 2016, when
it went £1.3m into the red in an all-out effort to hold onto its Holyrood
majority.
The last time the party’s reserves were in the red was 2017.
The filing also discloses the latest membership figures.
At the end of 2021, the party had 103,884 members.
At the end of 2022 it was 82,598 and at the end of June this year it was 73,936.
The drop of 29,948 represents a decline of 28.8% in 18 months.
In his report on the accounts, Mr McDonald said: “Overall membership payments
decreased by 9% during 2022.
“Public concern about the economy and job security has understandably impacted
on membership income in 2022, with the soaring costs of living being given as
the reason for cancelling or lowering membership payments.”
INVESTIGATION: Inside the SNP money machine
Recommended by
He added: “These accounts, like previous years, illustrate the huge significance
of individual membership income and donations for the party.
“The accounts disclose a deficit of just over £804,000 in 2022.
“Neither this deficit, nor the balance sheet, are out of keeping with other
years in which nationa-wide elections were fought including 2021.
“However, it will be important to return the party to surplus in 2023 as we
build towards the next general election.”
“Like every membership organisation today, we face challenges and uncertainty in
the face of rising inflation and the cost of living crisis which impacts on our
members.
“It is also important to note that the earmarking of 25% of membership income
for branches (sometimes referred to as the ‘branch dividend’) equates to a
figure which is 71% (£571,727) of the deficit (£804,278).
“Similarly, approximately 64% (£837,600) of the creditors figure in the balance
sheet (£1,306,384) relates to dividends allocated to branches - essentially one
part of the party owing other parts of the party.”
Scottish Tory Craig Hoy MSP said: “These accounts paint a grim picture and raise
serious questions which the SNP must answer.
“The auditors highlight the party’s failure to keep a proper record of the
income received from donations and fundraisers, which is highly irregular and
means they could provide only a qualified audit.
“This would appear to explain why the SNP was forced to spam accountancy firms
across the UK in a desperate bid to find someone willing to sign them off before
the deadline.
“The SNP also remains in debt to Peter Murrell to the tune of £60k, which is
doubtless why Humza Yousaf failed to suspend him and his wife Nicola Sturgeon
following their arrest as part of the Operation Branchform investigation.
“The SNP should do the right thing and pay off what it owes its disgraced
ex-chief executive and finally sever ties with him. His successor, Murray Foote,
must now commit to providing full transparency on the SNP’s finances as a matter
of urgency.”
Scottish Labour deputy leader Jackie Baillie said: "The financial chaos now
engulfing the SNP goes to show how little the governing party can be trusted
with Scotland’s finances.
“The fact is that the SNP is a party in utter disarray – with Scots looking on
in disbelief as Humza Yousaf and his lieutenants desperately try to keep this
sinking boat afloat.
“From police investigations to empty bank accounts, the SNP’s credibility is
shot to pieces. It’s time for a fresh start with Scottish Labour.”
An SNP spokesperson said: "2022 was a challenging year for all political parties
- with nationwide local authority elections, costs rising, and members
understandably cutting back on donations due to a Westminster-made cost of
living crisis.
"However, as we move forward, the SNP is determined to balance its accounts in
preparation for the Westminster election in 2024.”
The SNP’s deficit was the second largest of any political party in the UK with
an income or expenditure of more £250,000 in 2022.
Only the Conservatives recorded a larger deficit, ending a chaotic year £2.38m
in the red after spending £33m against income of £30.7m.
UK Labour recorded a £2.7m surplus, and the UK Liberal Democrats a £753,000
deficit.
Other Scottish parties had a mixed bag.
Alex Salmond’s Alba increased both its income and its membership, ending the
year with a £17,425 surplus, while the Scottish LibDems had a surplus of
£291,287.
Scottish Labour had a £123,787 deficit and the Scottish Greens a deficit of
£28,191.
The Scottish Tories do not publish accounts.
The Electoral Commission said 18 large income parties reported total income of
£99,993,948 and expenditure of £101,686,906.
Director of Regulation Louise Edwards said: “We are committed to making sure
political funding is transparent.
"Larger parties spend and receive considerable sums of money so it’s important
that information on their finances is accessible to the public.
"Publishing their accounts allows voters to see how parties are funded and
choose to spend their money.”
Humza Yousaf
SNP
Politics
Scotland
Share
119 Comments
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31. SPARE ME THOSE DEEP-FRIED CORNFLAKES, PLEASE
32. MAN AND WOMAN FOUND DEAD NAMED BY POLICE
33. 'HE'S AMAZING WITH KIDS': SCOTS WOMAN HELPS RESCUE MORE THAN 30 XL BULLIES
34. IVAN MCKEE: IF SNP USE THE POWERS THEY HAVE EFFECTIVELY, INDEPENDENCE WILL
FOLLOW
35. WHY KEEPING MATT O'RILEY IS CELTIC'S TOP TRANSFER WINDOW PRIORITY
36. THREE KEY AREAS SCOTTISH FOOTBALL MUST FOCUS ON, AND POSSIBLE MOTHERWELL
RETURN
37. SNP FACE FINE OVER £15K IN UNDECLARED LOANS FROM STURGEON'S HUSBAND
38. MATTHEW LINDSAY: SCOTLAND'S CLUBS HAVE MORAL OBLIGATION TO PROTECT REFEREES
FROM YOBS
39. SUSAN EGELSTAFF: 30 YEARS ON, THE HARDING-KERRIGAN SCANDAL IS AS SHOCKING
AS EVER
40. PASSENGER DIES ONBOARD FLIGHT FROM TENERIFE TO GLASGOW
41. MAN ARRESTED AFTER WOMAN DIES IN SEASIDE TOWN ON NEW YEAR'S DAY
42. MAN AND WOMAN ARRESTED AND CHARGED OVER FATAL SHOOTING OUTSIDE PUB
43. THRILLING SCOTTISH CHAMPIONSHIP DESERVEDLY TAKES CENTRE STAGE DURING WINTER
BREAK
44. 'EXTREME CONCERN' FOR MISSING AYR WOMAN AS MAJOR SEARCH UNFOLDS
45. QUITTING NET ZERO TSAR SKIDMORE IS WRONG ON NORTH SEA OIL AND GAS, SAYS
HUNT
46. NEW RENTAL PROPERTIES PLAN FOR HISTORIC GLASGOW HOSPITAL
47. 'THAT IS JUST THE START. WE WANT TO PUSH ON NOW' - LUNDSTRAM MAKES RANGERS
PREDICTION
48. MSP BLASTS SFA 'CULTURE OF SECRECY' AS CELTIC VS RANGERS VAR PARLIAMENT
MOTION TABLED
49. 10 RESTAURANTS AND CAFES IN SCOTLAND TO VISIT DURING A NEW YEAR HEALTH KICK
50. RESTAURANT NAMED AS ONE OF SCOTLAND'S 'MOST BEAUTIFUL' LAUNCHES NEW
AFTERNOON TEA
1. MATTHEW LINDSAY: SCOTLAND'S CLUBS HAVE MORAL OBLIGATION TO PROTECT REFEREES
FROM YOBS
2. 'WHO?': MHAIRI BLACK SHARES THOUGHTS ON NICOLA STURGEON AND A 'CULT OF
PERSONALITY'
3. SPIKE IN SCOTS TEACHERS LEAVING THE PROFESSION CITING POOR PAY AND
CLASSROOM VIOLENCE
4. GRAEME MCGARRY: COMPETENCY, NOT CONSPIRACY, IS THE ISSUE IN RANGERS VAR ROW
5. NICOLA STURGEON ADMITS FLAGSHIP PLAN FOR CHILDREN IN CARE MAY FAIL TO MEET
ITS GOALS
6. ‘GROWING’ SCOTTISH GREENS PLAN TO STAND MORE CANDIDATES AT GENERAL ELECTION
7. SNP CABINET UPDATED ON CRONYISM ROW INVOLVING YOUSAF AND HIS COUSIN
8. IAN MCCONNELL: A SHAMEFUL SCRAPING OF BOTTOM OF THE BREXIT BARREL
9. A VOTE FOR INDEPENDENCE IS NOT A VOTE FOR AN SNP GOVERNMENT IN PERPETUITY
10. DATE SET FOR ENFORCEMENT OF CITY'S PAVEMENT PARKING BAN
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